Travelodge has announced plans to capitalise on the rapid growth in the budget sector by doubling in size over the next six years.

The firm already has plans to develop sites in Wolverhampton and Fort Dunlop in 2005.

The chain - bought by private-equity firm Permira two years ago - has pledged to add 15,000 rooms by 2011 and create 4,500 jobs within three years, quashing speculation that it was contemplating a stock-market flotation.

Around £20 million will be spent on revamping the Travelodge brand for the first time in two decades as competition in the budgethotel sector heats up, following the combination of Premier Lodge with Travel Inn last year.

Figures released by Travelodge yesterday showed sales rising by 13 per cent to £163 million during the 12 months to December 31, driven by 17 new hotels and more than double the number of bookings made using the internet.

Revenues per available room were six per cent higher than a year ago and this was mainly due to an improvement in occupancy, which was up three percentage points to 73 per cent, the company said.

Chief executive Grant Hearn said: "We had a lot of work to do with Travelodge; it needed it. The new identity represents a lot more than just a new look. We have implemented a new low- cost business model that delivers strong growth and allows us to offer consumers the best room rates around. We have serious plans to drive the growth and usage of the budget sector."